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King Khan Corporation (KKC) manufactures kongs and kangs, the production of which requires considerable energy. Power generation department costs amounted to $4 million this month,

King Khan Corporation (KKC) manufactures kongs and kangs, the

production of which requires considerable energy. Power generation

department costs amounted to $4 million this month, for a total of 50

million kilowatt hours (kwh) supplied to the plant. Analysis shows that

40% of power generation costs are fixed. This month the Kang Dept.

made 5 million kangs, each using 4 kwh, and the Kang Dept. made 4

million kangs, each using 6 kwh.

In the following month, the power generation department costs amounted

to $4.3 million for 51 million kwh. Kong Dept.'s usage was the same, but

the Kang Dept. increased output to 4.1 million kangs, each using the

standard power allowance. If KKC employs an insulating cost allocation

mechanism, and fixed costs are shared equally, what are the total costs

charged to the Kong Department and the Kang Department in March?

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